SWOT ANALYSIS AS A CRUCIAL TOOL IN BUSINESS STRATEGY DEVELOPMENT

Abstract

This article is dedicated to exploring SWOT analysis as a crucial tool in forming business strategy. The objective of the study is to examine the characteristics of SWOT analysis and determine its importance in strategic planning across various business scenarios. Throughout this scientific investigation, methods of analysis and synthesis, induction and deduction, and comparative techniques were employed. The novelty of this research lies in a thorough analysis of SWOT, which includes evaluating its effectiveness and adaptation in contemporary business environments with an emphasis on the impact of digitalization. Specifically, it considers how technological tools can optimize the SWOT analysis process, ensuring greater objectivity and accuracy in strategic planning. It has been found that SWOT analysis, as a strategic planning tool, aids in a deep understanding of an organization's internal resources and their significance in achieving competitive advantages. The analysis allows for clear identification of the organization's unique values, which can be leveraged to strengthen its market position. Emphasis is placed on the importance of integrating SWOT analysis with other strategic planning tools such as PESTEL analysis and Porter's analysis, to comprehensively assess both external and internal environments of a company. It has been explored that the simplicity and universality of SWOT analysis make it particularly valuable for various types of organizations. It is demonstrated that adding quantitative methods, such as Fishburne's weighting coefficient system, enhances the objectivity and precision of the analysis, facilitating the optimization of strategic decisions. This allows organizational leaders to more effectively allocate resources, focusing on the most critical aspects of their operations. It is also noted that integrating SWOT analysis with software can further increase the effectiveness of strategic planning through standardization of processes and deeper analysis. The practical significance of the research highlights the potential of SWOT analysis as a fundamental tool in developing effective strategic plans for various organizational forms.